South Dakota-based Heartland Energy recently launched Demand-Adjusted Technology Advantage, or DATA, an interruptible data center rate policy customers can use to facilitate construction and operation of data centers, while minimizing risk.
To qualify for the DATA rate, data centers must be located within Heartland Energy’s current service territory. They must have a peak load of at least 5 MW and maintain an 80% load factor.
Infrastructure upgrades may be necessary to adequately serve a data center, the joint action agency noted.
With DATA, the data center would be required to pay for all system improvements and study deposits for transmission and distribution systems.
DATA specifically targets data centers capable of meeting interruptible rules. An interruptible rate is a special rate structure where customers agree to reduce or shut down their electricity usage during periods of high demand.
Data centers would have to be capable of participating in demand response programs within their respective regional transmission organization. Quarterly tests would be required to demonstrate interruptibility.
“This ensures reliable and cost-effective energy, minimizes risks, and meets many market expectations,” Heartland noted.
Next Steps
Customers of Heartland Energy may choose whether to participate in promoting DATA in their community.
Heartland staff will be visiting with customers about the structure of the program and answer any questions they may have.
Data centers do typically require a sizable chunk of land. Centers with 10 MW of load typically occupy two acres of land, Heartland Energy noted.
“With the launch of the DATA program, Heartland Energy is providing communities with a strategic opportunity to attract data centers, drive economic growth, and ensure reliable, cost-effective energy for the digital future,” it said.
In rolling out details on DATA, the joint action agency notes that while data centers can create jobs, they “also tend to increase demand for local infrastructure, such as roads, utilities, and telecommunications, which can improve overall community services.”
Moreover, data centers can stimulate the local economy, Heartland Energy said. “Local governments may benefit from increased tax revenues, which can be reinvested into public services, schools, and other community development initiatives.”
Heartland Energy provides wholesale electric energy to 29 cities and municipal electric systems in South Dakota, Minnesota, Iowa and Nebraska.
It also provides energy solutions to six public institutions in South Dakota and has a unit contingent contract with North Iowa Municipal Electric Cooperative Association.
